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Former Goldman Sachs Board Member Sentenced to 2 Years in Prison, Fined $5 Million

Small fine and he probably will never see the inside of a real prison but, its better than nothing...

A former Goldman Sachs and Procter & Gamble board member once widely respected worldwide for his business smarts was sentenced Wednesday to 2 years in prison for feeding inside information about board dealings with a billionaire hedge fund owner who was his friend.

Rajat Gupta, 63, of Westport, Conn., was sentenced by U.S. District Court Judge Jed Rakoff, who also ordered him to pay a $5 million fine. The Harvard-educated businessman long respected on Wall Street was one of the biggest catches yet for the federal government in its five-year crackdown on insider trading that has so far resulted in 69 convictions.

Gupta was ordered to report to prison on Jan. 8.

Reading from a statement, he said: "The last 18 months have been the most challenging period of my life since I lost my parents as a teenager.

"I regret terribly the impact of this matter on my family, my friends and the institutions that are dear to me. I've lost my reputation I built for a lifetime. The verdict was devastating."

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http://www.cnbc.com/id/49538719



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